life insurance in south africa

What Are Types of life insurance in South Africa?

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There are two main types of life insurance. Term and whole life insurance are popular among life insurance policy companies. Also known as “permanent life insurance”, Whole life insurance includes various subcategories, including universal life, traditional whole life, variable universal life and variable life. Different life insurance companies offer different life policies to individuals. We have listed a number of policy options offered to individuals.

Term Insurance

Term Insurance is one of easiest form of life policies. It only pays in an event of loss of life. This policy covers people from between the age of one to 30-years-old. Term life insurance comes with two basic types, decreasing term and level term.

  • Decreasing term – this means that death benefits fall, typically in one year growth.
  • Level term – in this policy term, death benefits stay the same over the course of the policy.

Whole or Permanent Life Insurance

This type of life policy pays a death benefit when you die. There are three types of whole life insurance and they are variable universal life, universal life, and traditional whole life insurance. You can call your insurance company for more information about different types of permanent life policy.

Common types of life insurance

There are different types of life insurance policies that one needs to look at before buying insurance.

  1. Trauma Insurance – this is also known as critical illness insurance and it pays a lump sum when you are diagnosed with illnesses such as stroke, cancer or heart attack. This will give you a peace of mind knowing that you will be able to pay hospital bills, take care of your family, or take care of your family if there’s an emergency.
  2. Life insurance – pays a lump sum when you die. Your family will be taken care of. They won’t have to worry about paying bills, or your children’s education. You basically take care of your family while still alive.
  3. Business Expenses Insurance – this covers your business expenses so that you continue operating your business as a self-employed business person. You will also be covered when you are unable to work due to an injury or illness.
  4. Key Person Insurance – it covers the losses suffered when an individual crucial to the success of business is sick, injured or dies.

Image Courtesy: iii.org

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